As is well known by anyone who’s spent a few years trading, the market is likely to frustrate the largest amount of people it can the majority of the time. This week, it was the amateur shorts who needed a bit of punishment. They got it in the form of the biggest up week for the market since last July.
Negative sentiment had gotten pretty carried away into late June inspiring a new raft of short-sellers to step up to the plate. The Dow just beaned them with a 95 mph fastball this week.
Here’s Tyler Durden:
As the chart below shows, NYSE short interest for the week ended June 15 was the highest in 2011, at 13.5 billion shares, a jump of 333 million share in two weeks, which certainly persisted into the second half of the month…
The blue bars below are short interest figures, they take out that year high with with perfect timing 🙂
Tags: $SPY, $DIA